The pace of basic wage growth has fallen back for the first time since January, according to official figures being closely watched by the Bank of England.
Data from the Office for National Statistics (ONS) showed that average basic wages rose by 7.8% during the three months to August compared to a year earlier.
That was down slightly from a revised rate of 7.9% last month.
Separate figures for average weekly earnings, which include bonus payments, showed a marked easing to 8.1% from 8.5% but that is believed to reflect the impact of public sector awards paid in June.
The data may provide some comfort to policymakers at the Bank who are worried that high wage growth risks stoking inflation which is currently running at 6.7%.
The concern is that any boost to household spending power, because wage growth is running at a higher pace, will bolster demand and place upwards pressure on prices.
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BoE: ‘We cannot be complacent’
The most glaring was a steeper easing in inflation than had been anticipated.
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But it could yet impose a further 0.25 percentage point increase in November if it fails to see inflation continuing to slow.
The figures for September are due to be released on Wednesday.
Market expectations of a rate rise in November fell back in the wake of the ONS report.
Refinitiv data showed 77% of participants believed there would be no increase when the MPC’s next decision is announced on 2 November. The figure was closer to 70% before the data was released.
The wider ONS figures showed the number of people in payrolled employment fell by 11,000 in August.
It also reported that the number of job vacancies in the three months to September was 988,000, down from 998,000 in the three months to August.
Unemployment figures and other related labour market data will not be published until next week after the ONS said that it needed more time to take account of low response rates.
A 43-year-old woman has been arrested on suspicion of murder after the death of two children in Stafford.
Police were called to a home on Corporation Street at around 7.30am on Sunday by West Midlands Ambulance Service.
Two children were pronounced dead at the scene, StaffordshirePolice said.
Detective Inspector Kirsty Oldfield said: “We are working hard to understand more about what happened leading up to these two children tragically losing their lives.
“We ask that people do not speculate at this stage as it is distressing for family and friends and could hinder our inquiries.
“We understand that this incident may cause concern in the local community. We don’t believe there is wider threat to the public at this time.”
The 43-year-old woman, who is from the Stafford area, remains in custody.
The force has not confirmed the ages of the two children. Their next of kin have been informed and are being supported by specially-trained officers, police said.
A man has been charged with stalking and possession of a flick knife after allegedly targeting Lib Dem leader Sir Ed Davey and his family.
Inigo Rowland, 58, of Surbiton, south London, was arrested last Monday, but it was only made public on Sunday.
He appeared at Wimbledon Magistrates’ Court on Tuesday and was remanded in custody, the Met Police said.
The offences are alleged to have taken place between June and October.
Sir Ed, the MP for Kingston and Surbiton, lives in southwest London with his wife, Emily, their 17-year-old son John, and his younger sister Ellie.
A spokesperson for the Met Police said: “Inigo Rowland, 58, of Surbiton has been charged with stalking and possession of a flick knife.
“He appeared at Wimbledon Magistrates’ Court on Tuesday, 7 October and was remanded into custody. He will next appear at the same court on Tuesday, 14 October.
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“He was arrested on Monday, 6 October in relation to the offences, which are alleged to have taken place between June and October.”
A Lib Dem spokesperson said: “We cannot provide any details at this time, Ed’s number one priority is the safety of his family.”
Paedophile Lostprophets singer Ian Watkins has died after being attacked in prison.
Watkins, 48, was serving a 29-year jail term for multiple sexual offences, including serious crimes against young children and babies at HMP Wakefield, in West Yorkshire.
He was attacked with a knife by another inmate on Saturday morning, sources have confirmed.
West Yorkshire Police said two men, aged 25 and 43, have been arrested on suspicion of murder.
Image: A police van outside Wakefield prison. Pic: YappApp
Watkins was pronounced dead at the scene after prison staff reported the assault to police.
The prison went into lockdown in the immediate aftermath of the incident, sources added.
A Prison Service spokesperson said they could not comment while the police investigate.
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Watkins was previously stabbed in an incident at the same prison in 2023, suffering non life-threatening injuries after he was reportedly taken hostage by three other inmates before being freed by prison officers six hours later.
He was sentenced in December 2013to 29 years in prison, with a further six years on licence, after admitting 13 sex offences, including the attempted rape of a fan’s baby.
He also encouraged a second fan to abuse her child during a webcam chat and secretly stashed child sexual abuse videos, some of which he had made himself.
At the time, police described him as a “committed, organised paedophile”.
Having found fame in Welsh rock band Lostprophets, Watkins was arrested after his Pontypridd home was searched on orders of a drug warrant in September 2012.
A large number of computers, mobile phones and storage devices were seized during the search.
When sentenced at Cardiff Crown Court, the singer was told he was being given an extended sentence – and a judge said his crimes “plumbed new depths of depravity”.